EU Rescue Fund Approves 8.5 Billion-Euro Aid Payout for Greece
- 7.7 billion euros to be disbursed on July 10, rest in the fall
- Loans to be used for debt servicing, arrears clearance
A Greek national flag flies from scaffolding outside an old building in the Plaka district of Athens, Greece, on Thursday, June 14, 2012. Greeks head to the ballot box in two days for a contest that may determine the fate of the world's first democracy and the future of the newest reserve currency, while roiling markets from Wellington to Wall Street.
Photographer: Chris Ratcliffe/BloombergThe European Stability Mechanism, the European Union’s bailout authority, approved 8.5 billion euros ($9.7 billion) in financial aid to Greece on Friday, allowing the country to meet payments due this month and formally closing a key chapter of its rescue.
A tranche of 7.7 billion euros will be disbursed on July 10, the Luxembourg-based ESM said, while the remaining amount will be available from September, and granted only once Athens has cleared sufficient domestic arrears.